Gold edged higher to $1270 ahead of the key event risk - FOMC decision

Gold built on previous session sharp recovery move from weakest level since June 2 and is currently placed near session tops, around $1270 region.

The precious metal on Tuesday turned higher following the US Attorney General Jeff Sessions' Senate testimony on his dealing with Russian officials during the 2016 US Presidential campaign. Spot retained its positive bias through early European session on Wednesday amid softer tone around the US Dollar, which was seen lending some support to the dollar-denominated yellow metal. 

Meanwhile, traders also seemed to lighten their positions ahead of the highly anticipated FOMC decision. With an eventual rate-hike move possibly fully priced-in, investors now await signals over future policy tightening in order to determine the next leg of directional move for the non-yielding metal.

Heading into the key event risk, today's US macro data - inflation figures and monthly jobs data, would be looked upon for some short-term trading impetus during early NA session.

Technical levels to watch

A follow through buying interest beyond $1270 level is likely to accelerate the up-move towards $1274 intermediate resistance en-route $1279-80 important horizontal resistance. On the flip side, weakness back below $1265 level could drag the metal back towards $1260-59 support area, below which the downslide could get extended towards $1255 level ahead of $1250 support area.